IDFC First Bank Limited has informed the Exchange about Credit Rating- New
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ICRA has reaffirmed IDFC First Bank's credit rating at ICRA AA+/Stable for debt instruments totaling Rs 12,520 crore, comprising Basel III Tier II Bonds (Rs 3,000 crore) and Infrastructure Bonds (Rs 9,520 crore). The rating agency also withdrew ratings on matured non-convertible debentures worth Rs 3,883.70 crore as these have been fully redeemed with no outstanding amount. The reaffirmation reflects the bank's comfortable capital position with CET I ratio of 13.73% and CRAR of 15.60% as of March 2026, supported by a Rs 7,500 crore capital raise during FY2026. However, the bank faced profitability challenges with RoA moderating to 0.44% due to a one-off fraud-related cost of Rs 646 crore in Q4 FY2026, though asset quality improved with gross NPAs declining to 1.61% from 1.87% a year ago.
The stable outlook and rating reaffirmation indicates IDFC First Bank's debt servicing ability remains strong, which is positive for bondholders. The stable outlook factors in expected improvement in asset quality and profitability, though the bank needs to address elevated operating costs and credit costs in its microfinance portfolio.